Business risks essay

Managers use risk management as a benchmark to measure the achievement of an organization. An organization that is able to manage all the risk elements successfully acquires better position in the market. Most successful organizations have ventured in risky businesses and this has created a lot of wealth to the shareholders.

Secondly, risk management involves the identification, analysis and response to the risks affecting an organization. To manage risks an organization can control, avoid, accept, or transfer the risks to other parties. Lastly, compliance deals with conforming to all requirements stipulated by the concerned stakeholders (Mohapatra, n.d.).

Enterprise wide risk management involves managing risks and seizing opportunities which help an organization to achieve its objectives. Managing risks as opportunities come is very important in maintaining the success of the organization. Creating value to the shareholders capital is the major bestowed upon the managers of an organization.

Risk management strategies are enhanced by the culture of the organization and this can be maintained by inculcating a culture of good values, believes, norms and attitudes. Changes in the global markets today create a huge risk to organizations and this creates the need to have mechanisms to solve organizational problems in a professional manner.